Strategic Flexibility Enables Lemons to Become Lemonade
A rapidly growing fruit juice manufacturer was always
struggling to get local California fruit to avoid having to ship in expensive juice from
out of state. NPC helped the company upgrade its production equipment within its existing line of
credit. However when a citrus freeze hit, the company had a chance to buy all the
fruit it could handle at record low prices. NPC worked with the firm’s bank to
triple its already fully used line of credit in order to buy enough fruit to
operate its factories (with their new equipment) 24 x 7 throughout the season.
With the lower cost fruit, the company's margins doubled and their bottom line
increased eight fold.
New Technology – Implementation Limitations Equals New Opportunity
A $300M international network services firm wanted to
deploy a new data communications technology but was concerned because it was
unable to collect customers' network usage information that was the basis of pricing
in the industry. Working with the firm’s marketing and operations group, NPC
designed a fixed monthly charge pricing structure, which had often been
requested by customers, and became the first in the industry to offer it. Profitability was assured by working with the
network engineers to determine network data volume exposures and then build
systems to monitor the networks actual performance relative to the
pricing assumptions. The marketing campaign drew front-page industry interest
and the ease of sale helped it become the fastest growing product line in the
company’s history.
NPC Introduces a New Market
A bar code system integrator was losing net income
as competitive pressures drove down hardware prices and margins. NPC
recognized the company’s unique ability to develop software to directly link
bar code equipment to legacy and ERP systems. Introductions to a mid-sized ERP
producer led to a co-marketing of the bar code systems with the ERP software.
Results for the system integrator were new software products to offer, new
sales channels to use, a new strategy that could be replicated with other ERP
vendors, and new growth at higher margins for the company.
Technology Translated into a New Service
A $20M fleet vehicle location tracking company that used
cellular technology had excess wireless capacity and wanted to translate that
into new revenues. NPC defined how a messaging service to the vehicles could be
established, found a telecom hardware supplier to partner with in developing the
service on their equipment, and helped define the business relationship
going forward.
Pricing Overhaul
A service company’s primary product pricing rules had
grown by adding features and special case pricing every year, but had reached
the point where it was too complex and confusing to explain to new customers or
sales staff. NPC designed a new overall pricing plan taking into consideration
the decreasing cost of the shared infrastructure, the increased competitive
pressures, the new market positioning of the service, the reseller sales channel’s
requirements and the existing contracts that assured large customers of “best
available” pricing. The revised pricing led to an upsurge in orders and eventually two
key strategic partnerships with larger competitors.
Putting Together the Team - Ground Zero Start-up Opportunity
Called in to review the business plan of an Internet
platform developer, NPC saw an opportunity to introduce the technology to a food distribution
industry expert who could lead a commercial application of the platform. The parties met and a new joint venture was
created combining the technology of the developer and service personnel of the
food industry contact. It received Angel funding and, within 4 months, became a revenue generating business
entity.